Top credit card frauds to watch out for

Adhil ShettyBankBazaar.comWhile credit cards are a boom in the modern world, the sad reality is that card holders are also exposed to debilitating frauds and scams of different types.While banks and credit card companies are proactive round the clock to offer increased security to their patrons, equally, hackers and scammers work overtime to architect new and innovative ways to cheat card holders.Here are some popular credit card frauds that you need to be wary of. Rigged ATM machinesATM machines are favorite targets of scammers who use advanced technological tools to rig them. Shaky or loose card slots in ATMs are tell-tale signs of such rigging. Scammers also tend to target isolated ATM machines unguarded by security personnel.Reports of such scams highlighted a case where foreign nationals were caught red-handed by the Mumbai police, who confiscated around 500 duplicate cards. These hackers were targeting ATMs with no security guards, and had installed skimmers and spy cameras near the card-reading slots to record passwords that customers entered in the ATM machine. The information recorded was being used to make duplicate cards and withdraw cash from other ATMs.Skimming devices at POSPoint Of Sale (POS) terminals at shopping stores and petrol pumps are not always safe, especially if the card is being taken out of sight for swiping. There have been cases where employees at retail stores, petrol pumps and restaurants were caught skimming devices attached to such POS machines.Always get your card swiped in your presence. If you notice any attachment on the POS machine, raise a red flag and report the same to your bank immediately. Phone and email fraudsDespite much of the cautionary narrative in the media, many individual still fall for the same old traps of phone and mail frauds, which now manifest in different forms. Scammers are still using the old method of calling up people, disguised as bank employees and seeking their card details on various pretexts like reducing interest rates and other alibis. Under no circumstances do banks ask their employees to seek credit card details or other sensitive information pertaining to their clients. So, if you ever receive a call from anyone seeking your card details, it is likely that the call is from a scammer.Email frauds may be a little hard to decode, as scammers would send you mails with logo of banks, IRDA or RBI. However, again remember, your bank will never ask your card details over mail. Duplicate websitesRecently, there were scams involving duplication of a popular social media platform and advertisements that the platform was offering work from home jobs for Indians. The users were asked to buy a starter kit by paying a small amount online. The site looked the same as that of the social media platform, but a closer examination of its URL revealed that the address was different. Many users who failed to recognize this fell victims—as soon as they entered their card details to purchase the starter kit, huge amounts were skimmed off from their accounts.Always double check the authenticity of the website and the payment gateway before entering your card details. Keep away from unknown auction sites with incredible offers and job sites promising unbelievable returns. Make sure you enter your card details with SSL secured websites having a Secure Hyper Text Transfer Protocol (HTTPS) instead of HTTP. Many browsers display a lock or similar symbol to depict this and display digital authentication of websites that are safe and used by majority of internet users.How banks are tackling credit card fraud•Replacement of magnetic strip cards with chip based cards: Most banks have now replaced the traditional magnetic strip-based credit cards with a chip-based card. In a chip-based card, the information is more securely encrypted and thereby the chances of skimming or fraud are very less.•Introduction of contactless cards: Banks are now looking at contact-less credit cards with NFC (Near Field Communication) and RFID (Radio Frequency Identification) technology. This means you will no longer need to swipe your card at POS terminals when making a purchase. This lowers the chance of any data leakage, making your card safe from hackers and scammers.General precautions to take to avoid credit card fraud•Never reveal your credit card number to anyone even if the person convinces you to be a bank employee.•Do not give your credit card details to any email requests, no matter who the sender is.•Use your credit card only on known shopping portals while buying online.•Do not click on unknown links or links sent by untrustworthy sources; always key in the website URL directly into the browser’s address bar.•Get your magnetic tape-based credit card replaced with a chip-based one.